Chapter 13 and Foreclosure

[iamok]

Hi- new to the forum and the post have been really helpful.

We are 2 1/2 year into our Chapter 13 and now surrendering our home.
The bank has had the automatic stay lifted and sent us a letter that if we don't pay current the home will be foreclosed on. We got this about 30 days ago. I am trying to get some information on what comes next.

Will we get a letter saying the home has been foreclosed on and we have 30 days to move out or do you not get that much notice? I just don't want to get a notice saying be out in 3 days or something like that.
We can't change to a 7 since we own a business and that is our only source of income. Our attorney said we can re-file the 13 to stay in the home longer, but I am not interested in doing that since we are half way through and I can see the light at the end of the tunnel!

Thanks for any advice

[LadyInTheRed]

It sounds like what you received was a notice of default. 90 days after the notice of default, they will send a notice of sale giving you at least 20 days notice of the foreclosure sale. After the foreclsoure sale, it is up to the new owner to get you out. They can send you a 3 day notice to vacate. If you don't move in 3 days, they could go to court to evict you. So, once you get the notice of sale, you should get ready to move.

I don't have personal knowledge of the timelines. The above info is based on a Google search "California Foreclosure Process".

[iamok]

So, at this point until we get the actual notice of forclosure I don't have to worry about the sheriff coming to my door.

I would like to be out before the new year so we are looking now. I know we should stay as long as possible, but the stress of worrying is not worth it anymore.

Thanks for the information.

[LadyInTheRed]

So, at this point until we get the actual notice of forclosure I don't have to worry about the sheriff coming to my door.

I would like to be out before the new year so we are looking now. I know we should stay as long as possible, but the stress of worrying is not worth it anymore.

Thanks for the information.

The Sheriff won't come to your door until you refuse to move out after receiving a 3 day notice from the new owner, the new owner files an unlawful detainer action against you and gets an eviction order from the court. Once the Sheriff gets a writ of execution, I believe the Sheriff gives 5 days notice before showing up at the door. If the Sheriff ever comes to your door, it won't be a surprise.

It sounds like you have at least 4 months before you can be evicted by force.

[159515951]

I'm curious as to what your plan looks like in a situation like this. It sounds like your home mortgage was part of your Chapter 13 plan -- that is, you were to continue paying for the home. So how does that work when the trustee realizes you haven't been paying your mortgage for a number of months (e.g. through modifying the plan to surrender the home)? Won't they realize that you've had much more disposable income than originally stated, and raise your monthly payment into the Chapter 13??

Thanks for your input.

[iamok]

Thanks again LadyInTheRed- that is good to know.
I figured they would just show up one day and force us to move so I wanted to be out before that happened.

We have not received anything yet that says the bank is actually foreclosing on us yet, just the threats so it sounds like we may have some time to find a new place.

[iamok]

I am not sure- our attorney knows we are surrendering the home and said the plan will be modified- I am fine in the plan goes up a little but he did not seem to think it would.
We can't afford the increased property tax, maintanence (the home is 40 years old) and other things. It is not just the payment.
We have also had some medical co-payments that are a few thousand dollars in 2012 which has taken extra money.